STC earnings analysis
What we found in STC's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Stewart posted Q2 revenue of $899.238 million and GAAP EPS of $1.21, with both improving from Q1 2026 and EPS rising from $1.13 in the prior-year quarter. Growth was broad based: Title operating revenues rose 15% to $683.6 million and Real Estate Solutions rose 75% to $197.4 million, although Title pretax margin fell to 6.9% from 8.1%. Six-month operating cash flow improved to $56.0 million, but capital expenditures of $41.9 million and debt of $646.7 million temper the otherwise constructive operating trends.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue and GAAP EPS accelerated
- Q2 revenue was $899.238 million, up from $781 million in Q1 2026 and approximately $722 million in Q2 2025. GAAP diluted EPS was $1.21, up from $0.55 in Q1 and $1.13 a year earlier.
- Real Estate Solutions delivered outsized growth
- Real Estate Solutions operating revenue rose $84.7 million, or 75%, to $197.4 million, while pretax income increased $11.8 million to $18.5 million and pretax margin expanded to 9.4% from 6.0%.
- Commercial title activity strengthened
- Title operating revenue increased $91.1 million, or 15%, to $683.6 million. Domestic commercial revenue increased $15.2 million, or 20%, to $89.8 million, supported by higher transaction volume and larger data-center transaction sizes.
- Claims experience remained favorable
- Title loss expense was 3.2% of title operating revenues, improving from 3.6% a year ago; known claims reserves declined to $65.4 million at June 30, 2026 from $84.8 million at December 31, 2025.
- Operating cash generation and liquidity improved
- Six-month operating cash flow improved $32.5 million to $56.0 million from $23.5 million. The company reported $914.9 million of total cash and investments at June 30, 2026.
- Employee-cost leverage improved
- Employee costs declined to 27.4% of operating revenues from 29.5%, reflecting revenue leverage, despite average headcount increasing to approximately 8,200 from approximately 7,000.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Title profitability lagged revenue growth
- Title pretax income declined $0.7 million to $48.6 million despite 15% revenue growth, and title pretax margin contracted 120 basis points to 6.9% from 8.1%.
- Higher debt balances increased interest burden
- Total debt was $646.7 million at June 30, 2026, including $200.0 million drawn on the credit facility and $446.4 million of Senior Notes. First-half interest expense increased $5.2 million, or 52%, due primarily to the higher credit-facility balance.
- Rate-sensitive income and housing demand remain risks
- Investment income declined $1.4 million, or 9%, to $14.8 million as lower rates and escrow balances reduced earned interest. Management noted the 30-year fixed mortgage rate averaged 6.4% in Q2 2026, still elevated despite being below 6.8% a year earlier.
- No material risk-factor updates
- Risk-factor disclosure contained 0 material changes from the 2025 Form 10-K. The filing continues to identify adverse real-estate activity, mortgage-rate changes, title-loss reserve uncertainty, technology implementation, and cybersecurity as key risks.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.21
- Segment
- Title: $683.6 million operating revenues, up $91.1 million (15%) year over year
- Segment
- Real Estate Solutions: $197.4 million operating revenues, up $84.7 million (75%) year over year
- Segment
- Corporate: $12.0 million pretax expense, versus $9.2 million of expense year over year
What they said about what is next.
The 10-Q provides no company numeric revenue or EPS guidance. Management cited industry forecasts that third- and fourth-quarter 2026 mortgage originations will be comparable with 2025, existing-home sales may improve approximately 3% for full-year 2026, and 30-year mortgage rates are expected to remain relatively stable after averaging 6.4% in Q2 2026.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 6, 2026
- Stewart Information Services Corporation (STC) posted strong Q1 2026 results, with revenue of $781.3 million and adjusted EPS of $0.78, significantly exceeding expectations. The title segment saw a 21% revenue increase,…
- 10-K · February 27, 2026
- Stewart positions itself as an integrated title insurer and real estate technology/services provider focused on end-to-end, technology-enabled transaction workflows and selective M&A (10-K references trademarked…
- 10-Q · August 5, 2025
- Stewart reported a strong Q2 2025 with consolidated revenue near $722M and diluted EPS of $1.13, driven by a 19% YoY increase in the title segment and 22% YoY growth in real estate solutions. Margins expanded: operating…
- 10-Q · May 7, 2025
- Stewart reported first quarter 2025 net income attributable to Stewart of $3.1 million (diluted EPS $0.11), roughly flat with Q1 2024, while consolidated revenue was about $612.0 million. Revenue growth was driven by…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
We read every filing STC makes the day it lands, and put it next to what the options market did about it. Members get both, and an alert when a filing arrives.
Cancel anytime · Month to month · Switch tiers whenever